Apple has lost its challenge against its gatekeeper designation under the European Union's Digital Markets Act after the EU's General Court upheld the company's designation for iOS and the App Store. The decision leaves Apple subject to the landmark law's competition rules, including interoperability requirements.
The Luxembourg-based tribunal rejected Apple's argument that its five App Stores across the iPhone, iPad, Mac, Apple TV, and Apple Watch should be treated as separate services. The judges ruled that, regardless of the device, the stores serve the same purpose of connecting software developers with end users. The court also rejected Apple's challenge to iOS's designation as an important gateway for businesses to reach users, leaving the operating system subject to the DMA's interoperability requirements.
The judgment also dismissed Apple's separate legal challenges relating to iMessage. Apple had challenged the European Commission's decisions opening and closing its iMessage market investigation, along with the service's classification as a number-independent interpersonal communications service. The court found those actions inadmissible because iMessage has not been designated an important gateway under the DMA, meaning the law's interoperability obligations do not currently apply to the service.
Following the ruling, an Apple spokesperson told Reuters the company believes the DMA's mandate goes beyond what is lawful and proportionate. Apple said the requirements threaten to erode decades of privacy and security protections while leaving users vulnerable to new risks. The company can appeal the judgment to the Court of Justice of the European Union, the bloc's highest court.
This latest legal setback comes amid ongoing friction between Apple and European regulators. The company recently confirmed it delayed the launch of Siri AI in the EU, citing concerns that the DMA's interoperability requirements could compromise device security. CEO Tim Cook also recently held constructive talks with EU officials to find a secure path forward for the region. Under the DMA, gatekeeper violations can result in fines of up to 10 percent of a company's global annual turnover.